XRP soars on Trump optimism

December 02, 2024

Reading time: 5 minutes

XRP rallies to 2024 high: Trump victory fuels crypto optimism

Key points:

  • XRP surged to $2.46, its 2024 high, before stabilizing at $2.29.

  • Ripple’s RLUSD stablecoin project and expectations of pro-crypto policies under Trump are driving optimism.

  • XRP has surpassed Solana and Tether to become the third-largest crypto asset by market capitalization.

News - Ripple’s XRP reached a new high for 2024, surging to $2.46 on December 2 before settling at $2.29. The rally has propelled XRP past Solana and Tether in market capitalization, securing its position as the third-largest cryptocurrency. The surge is attributed to a combination of factors, including Donald Trump’s pro-crypto presidential win, anticipation of a favorable resolution to Ripple’s SEC lawsuit, and optimism surrounding Ripple’s upcoming stablecoin project, RLUSD.

Trump’s win sparks market optimism - The 2024 U.S. presidential election has revitalized the crypto market, with Bitcoin and other assets rallying on expectations of a pro-crypto administration. XRP’s rise aligns with these broader market movements.

Speculation about a meeting between Ripple CEO Brad Garlinghouse and Trump also fueled XRP’s momentum, with the token gaining over 17% on November 15. While the meeting remains unconfirmed, it sparked debates within the crypto community about Ripple’s potential influence in shaping U.S. crypto policies.

Ripple’s SEC case and legal landscape - The SEC’s lawsuit against Ripple, filed in 2020, remains a critical factor for XRP. However, industry leaders like Consensys CEO Joseph Lubin and former CFTC Chair Christopher Giancarlo have expressed optimism about the Trump administration potentially dismissing or settling ongoing SEC cases. Giancarlo, in particular, has urged regulators to drop the Ripple case, which could significantly boost investor confidence in XRP.

Anticipation for RLUSD stablecoin - Ripple’s upcoming RLUSD stablecoin project is another major driver behind XRP’s surge. Expected to launch in early December, the dollar-pegged, overcollateralized stablecoin aims to integrate with XRP for cross-border payments. Approval from the New York Department of Financial Services (NYDFS) is anticipated soon, further fueling market excitement.

XRP’s recent price surge underscores the impact of macroeconomic and regulatory factors on the cryptocurrency market. With Trump’s victory boosting market sentiment, Ripple’s legal challenges potentially nearing resolution, and the RLUSD stablecoin project on the horizon, XRP is poised for continued attention in the months ahead.

Bitcoin eyes $100K as MicroStrategy adds $1.5B BTC

Key points:

  • Bitcoin gained over $2,000 following MicroStrategy’s $1.5 billion BTC purchase, reaching $96,000.

  • Analysts and traders remain optimistic about Bitcoin breaking the $100,000 mark. Microsoft shareholders will vote on a proposal to add BTC to its balance sheet on December 10, potentially boosting momentum.

News - Bitcoin surged 2% to reclaim $96,000 following MicroStrategy’s announcement of a $1.5 billion BTC purchase. The purchases, made through December 1, were confirmed by MicroStrategy CEO Michael Saylor in a filing with the U.S. Securities and Exchange Commission (SEC).

This latest acquisition brings MicroStrategy’s total Bitcoin holdings to 149,900 BTC, purchased at an average price of $13.5 billion. The firm’s aggressive Bitcoin strategy has generated $21.5 billion in gains over the past 30 days, according to CryptoQuant.

Market optimism builds toward $100,000 - The rally has renewed optimism about Bitcoin reaching the highly anticipated $100,000 milestone. Trading firm QCP Capital speculates that a vote by Microsoft shareholders on December 10 could provide the catalyst for BTC to cross this threshold.

Microsoft’s top shareholders, including BlackRock, Vanguard, and Fidelity, already hold significant exposure to crypto through investments in MicroStrategy and other crypto-related firms. If the proposal to add Bitcoin to Microsoft’s balance sheet is approved, analysts predict a bullish impact on BTC and the broader market.

Overbought RSI and market consolidation

At the time of writing, Bitcoin hovered around $96,000, retesting support at $95,000. Technical indicators like the relative strength index (RSI) are showing signs of bullish divergence after nearing oversold levels earlier in the day.

Traders remain optimistic, pointing to Bitcoin’s “corrective upwards consolidation” and increasing market volatility as indicators that a breakout above $100,000 is imminent.

Bitcoin’s price action reflects a mix of institutional confidence and technical momentum. With MicroStrategy leading the charge and potential catalysts like Microsoft’s vote on BTC adoption, traders and analysts are increasingly bullish on Bitcoin breaking the $100,000 mark before year-end.

Litecoin gains $1 billion in market cap as long-term holders liquidate

Key points:

  • Litecoin’s market capitalization has grown by 15% in the last week, adding $1 billion as its price climbed to a two-year peak of $119.64.

  • Increased coin movements among long-term holders suggest profit-taking, supported by spikes in on-chain metrics..

News - Litecoin (LTC) has experienced significant growth, with its market capitalization rising by 15% in the past week to reach $119.64—a two-year high. This surge added $1 billion to its market cap and reflected strong investor interest.

While the rally has prompted long-term holders (LTHs) to liquidate their positions, on-chain data suggests that Litecoin’s bullish momentum remains intact, signaling further potential gains.

LTH liquidations signal profit-taking - Litecoin’s Liveliness metric, which measures the movement of previously dormant coins, has surged to a year-to-date high of 0.71, up from 0.69 on November 1, according to Glassnode data. This spike highlights increased selling activity among LTHs as they take profits.

The Hodler Net Position Change, which tracks accumulation versus liquidation trends, has shown negative readings since November 2, further confirming this distribution trend. On December 1, it hit a year-to-date low of -993,199, emphasizing the scale of recent profit-taking.

Price outlook: Bulls in control - Despite selling pressure from LTHs, Litecoin’s price remains above the Ichimoku Cloud, a key indicator of bullish market momentum. This suggests that the positive trend could continue, with the potential to push LTC toward $143.41, a level last seen in January 2022.

However, if bullish momentum fades, Litecoin’s price may retrace to $107.58, its next significant support level.

Litecoin’s market performance highlights a balance between profit-taking by long-term holders and sustained bullish sentiment. With strong market momentum, LTC has the potential to break new levels, making it one to watch as it targets $143.41.

ETH poised to outperform BTC: Bernstein highlights key catalysts

Key points:

  • Ether (ETH) may be set to outperform Bitcoin after a strong inflow into spot Ether ETFs, with $250 million added on Friday compared to Bitcoin’s $137 million.

  • Bernstein highlights staking yields and growing blockchain activity as positive factors for ETH’s future performance.

News - Ether (ETH), the world’s second-largest cryptocurrency, could be entering a phase of outperformance relative to Bitcoin (BTC), according to a report by broker Bernstein. After a year-to-date underperformance, Ether ETF inflows are signaling a potential turnaround.

On Friday, BlackRock’s spot Ether ETF recorded inflows of $250 million, significantly outpacing its Bitcoin counterpart, which saw $137 million. This shift reflects growing interest in Ether among institutional investors and could drive favorable demand-supply dynamics for the asset, Bernstein analysts led by Gautam Chhugani noted.

Staking yields and blockchain activity boost ETH’s appeal - The report highlighted Ether staking yields as another potential catalyst. Currently, staking delivers yields of around 3%, driven by Ethereum’s transaction fees. Bernstein anticipates that under a crypto-friendly Trump administration, the SEC could approve staking yields for Ether ETFs, which may push yields to 4-5% as blockchain activity grows.

Ethereum remains the dominant platform for asset tokenization and stablecoins, with increasing activity reinforcing its market position. About 28% of Ether supply is locked in staking contracts, and 10% is in deposit and lending contracts.

Supply dynamics favor ETH growth - Ether’s supply has remained stagnant at 120 million tokens since Ethereum’s transition to a proof-of-stake mechanism. Notably, nearly 60% of Ether supply hasn’t moved in the past 12 months, a sign of a resilient investor base. This stability underpins Ether’s attractive risk-reward profile, Bernstein said.

With rising institutional interest, staking yield potential, and a stable investor base, Ether appears poised for growth. As ETF inflows continue to outpace Bitcoin and Ethereum’s blockchain activity increases, ETH could see a resurgence in performance, making it an asset to watch in the coming months.

Interesting facts

  • Bitcoin's energy consumption has been compared to that of entire countries. As of 2023, its annual energy use rivals that of Argentina, sparking ongoing debates about the environmental impact of mining.

  • A rare Bitcoin block reward from 2010, known as the "210,000th block," is still unspent. The coins are worth millions today, but the owner has never moved them, making them a long-standing mystery in the crypto space.

  • In 2019, a cryptocurrency called "Grin" was launched with a focus on privacy and scalability, and it introduced the innovative MimbleWimble protocol, which greatly improves blockchain efficiency by reducing data size.

Top 3 coins of the day

XRP (XRP)

Key points:

  • At press time, XRP was trading at $2.54.

  • Increasing by approximately 11.16% over the last 24 hours, it was the biggest gainer and trending cryptocurrency, as per CoinMarketCap.

What you should know:

On the daily chart, XRP was seen continuing its bullish momentum after a steep rally in recent sessions. The price was trading well above the 9-day Simple Moving Average (SMA) at $1.76, reflecting strong upward momentum. Moreover, the Stochastic RSI was in the overbought zone at 84.13, indicating that XRP may be overvalued in the short term and could consolidate or correct slightly. Trading volume has surged significantly during the rally, signaling strong market participation and buyer enthusiasm. Immediate resistance lies near $2.75, while the 9-day SMA at $2.30 serves as key support if a pullback occurs.

Popcat (SOL)

Key points:

  • At press time, POPCAT was trading at $1.19.

  • Decreasing by approximately 12.15% over the last 24 hours, it was the biggest loser, as per CoinMarketCap.

What you should know:

A sharp bearish trend was noted on the daily timeframe for POPCAT, with the price trading below the middle Bollinger Band and signifying mounting downward pressure. The Awesome Oscillator reflected a strong bearish sentiment, with red bars below the zero line, confirming the dominance of sellers. Additionally, trading volume spiked significantly during this decline, reinforcing strong selling pressure in the market. Immediate support lies near $1.10, a level that coincides with previous lows and could serve as a potential rebound zone. Resistance is expected around the middle Bollinger Band at $1.25, which aligns with prior consolidation levels. Traders should note that the sustained drop below the Bollinger Band’s lower limit signals heightened volatility and may result in extended bearish action unless buying pressure increases.

Hedera (HBAR)

Key points:

  • At press time, HBAR was trading at $0.26.

  • Increasing by approximately 27% over the last 24 hours, it was among the top trending cryptocurrencies, as per CoinMarketCap.

What you should know:

The daily chart indicated a robust bullish trend for HBAR, with the price trading well above key Fibonacci retracement levels. The Relative Strength Index (RSI) at 85.42 signaled overbought conditions that could lead to a short-term correction. Moreover, volume surged significantly, confirming heightened buyer interest during the rally. Fibonacci retracement levels from the recent low of $0.041 to the current high suggest immediate support near the 38.2% level at $0.12, with stronger support at the 50% level at $0.15. The 61.8% level at $0.18 offers critical support in the event of a deeper pullback. On the upside, resistance lies near $0.30, aligning with Fibonacci extensions and prior price levels. Traders should monitor these key levels, as a sustained move above resistance could confirm continued upward momentum, while a break below support might signal a broader correction.

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